UK Employers Fear Reputation Risks of Gender Pay Gaps

UK Employers Fear Reputation Risks of Gender Pay Gaps

Earlier this year, the UK’s gender pay gap reporting mandate came into force, obligating organizations with 250 staff or more to publish gender discrepancies in their payrolls by April 4 of next year. Some employers oppose the mandate because they say it will paint an unfair picture of their pay practices by not differentiating between group-to-group and role-to-role gaps, or between legitimate and discriminatory pay differentiation.

Few employers have reported their pay gaps yet, but already, the few revelations that have come out have led to headlines like “Financial services suffer from widest gender pay gap in UK“—not good news, but also, not exactly news. As such, British employers are concerned about the impact of this reporting on their reputations, particularly among those that do have large gender pay gaps. Personnel Today’s Adam McCulloch flags a new survey of senior professionals finding that 84 percent believed the requirements would damage organizations’ reputations and that 73 percent thought companies with large gaps would have more trouble recruiting:

The new research from public relations firm Golin also found that just over three-quarters (76%) of professionals agreed that organisations should be named and shamed for their gender pay gap and 77% felt that companies were likely to lose staff once the pay data was published. More than a third of respondents said that the issue was more toxic for companies than corporate tax avoidance and, perhaps most seriously, 39% of female respondents said they would consider leaving if their company reported a significant pay gap.

These findings are no surprise to us at CEB (now Gartner), as our latest research into pay equity finds that perceptions of pay inequality can be just as harmful to employee retention as pay inequities in fact—and the perceptions tend to be even worse than the facts.

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Push for Gender-Neutral Policies Highlights Growing Interest in Paternity Leave

Push for Gender-Neutral Policies Highlights Growing Interest in Paternity Leave

Over the past few years, we have seen a growing number of organizations in the US and around the world introduce or expand parental leave benefits for new fathers in their workforce, as well as new mothers, in response to increasing demand for paternity leave and greater work-life balance for working parents in general, particularly among millennials who are starting families. Recent court cases both in the US and in the UK have advanced the argument that granting more parental leave to mothers than to fathers (beyond the additional medical leave to which women who have just given birth are entitled) constitutes gender discrimination.

These lawsuits point to the increasing importance of paternity leave in employee perceptions of their total rewards packages. Our research at CEB (now Gartner) shows that employees are sensitive to changes in both maternity and paternity leave. However, increasing paternity leave actually has a slightly greater impact on employee perceptions of rewards than increasing maternity leave, likely because paternity leave is rarer and more variable across companies.

As a forthcoming benchmark report on employee rewards preferences will show, employees globally also tend to get more utility out of lower levels of paternity leave than maternity leave. That is, employees are more sensitive to an additional two weeks of paternity leave than they are to the same additional amount of maternity leave.

Yet this does not mean that maternity leave is not valuable or important!

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